Question

Calculate the Break Even Point from following
P/V Ratio - 40%
Variable cost per unit Rs. 60,000
Total cost Rs. 1,00,000.​

Answer 1

Explanation:

Here contribution is multiplied by 100 to arrive the percentage. For example, the sale price of a cup is Rs. 80, its variable cost is Rs. 60, then PV ratio is (80-60)× 100/80=20×100÷80=25%.

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